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Macquarie Infrastructure Group (MIG) have a Neutral 1 share trading recommendation and an increased 12 month price target of $4 from analyst UBS. They have revised up their price target from $3.80 to reflect the roll forward of their investment in MIG. They have not made any material operating or valuation assumptions changes. On a pro-forma basis MIG's 10 road portfolio delivered traffic growth of 9.8%, revenue growth of 20.9% & EBITDA growth of 28.7% over the half. The metrics were all better in Q2. At the asset level, roadworks held back traffic on the 407, Skyway, Greenway, ITR & APRR (continuing to benefit M6 Toll), the latter two expected to be impacted beyond CY07. Risk premium moves over the period were APRR 12% (from 18%), and Indiana Toll Road to 7.5% (from 7.8%). Of the $206m portfolio value change (pre-US sale & ex-SRG), operational changes (roll forward, ERP, re-fi and other) accounted for +$272m, macro factors -$154m, and new investments +$88m. With A$1.9b of excess cash (incl $697m for buy-back) at 22 Feb 07, a US toll road market about to go through a privatisation boom, in our view, and a security price 7cps away from 31 Dec 06 NAV, the analyst is getting the feeling MIG is moving into its next phase of acquisitions. The next two acquisitions will be critical benchmarks that the market will use to assess the MIG model.

Macquarie Infrastructure Group Limited is listed on the Australian Stock Exchange (ASX) under stock code MIG. You can view their investor website here. MIG was listed on the ASX on 16 December, 1996. Stephen Allen is the CEO for Macquarie Infrastructure Group and Mark Johnson the Chairman. Macquarie Infrastructure Group (MIG) is one of the largest developers and operators of toll roads in the world. MIG has a geographically diversified portfolio of 11 toll roads across seven countries, and a track record of successfully integrating significant, complex businesses. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade MIG. Check your charts and good luck with your share trading!

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